Thursday, December 2

S&P Merval Accentuates Bad Streak; Country Risk exceeds 1,800 points and touches another annual maximum

In this framework, the BYMA S&P Merval index fell 2.2% to 83,849 units, after losing 10% last week.

On Wall Street, meanwhile, the shares of Argentine companies operated unevenly, after yielding more than 6% the day before. Among the uploads, the papers of Central Puerto and Galicia (rebound up to 2.4%), while Among the casualties, the assets of Despegar and Bioceres stood out (they lost up to 1.9%).

“The market gave the feeling of having lost a good part of the optimistic expectations that it had been offering since the beginning of the month and was supported by the doubts that remain in the face of the variety of post-election scenarios, with a volatility in the prices that continues to be a protagonist of the scene “said Javier Rava, director of Rava Bursatil.

In addition, the global context influences with concerns about the European outbreaks of Covid-19, a potential hike in rates from the Federal Reserve and the strong devaluation of the Turkish lira.

Bonds and Country Risk

In the fixed income segment, and like stocks, bonds in dollars operate with a majority of drops, reaching up to 3.5%, led by Bonar 2030 (AL30).

“Sovereign bonds in dollars lose 15% since the September primaries (STEP). The news about the result of the elections and the comments on the potential agreement with the IMF were not enough to boost the price of these assets”, said Paula Gándara, head of portfolio management at AdCap Asset Management.

“Only strong advances will determine the improvement in the prices of these bonds (…) The rumors of exchange splitting negatively affected the (financial) products that offer coverage against devaluation”, added.

Meanwhile, the Country Risk -prepared by the JP Morgan bank-, it climbed 1.6% to exceed 1,800 points (reaches 1,809) to score a new all-time high since the debt swap in 2020.

This is a very high level that clearly reflects the distrust of investors both in reaching an agreement with the IMF and in the subsequent fulfillment of commitments.

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